HomeTrading TipsAMZN Stock Drops More Than Broader Markets: What You Should Know

AMZN Stock Drops More Than Broader Markets: What You Should Know

Published on

Amazon (AMZN) is currently trading upwards at $122.22 as of 10:51 AM EDT. 

AMZN Stock (NASDAQ:AMZN) finished Tuesday trading at $122.19 moving down -1.98% from the day before. This shift was slower than the S&P 500’s 1.13% daily loss. The tech-heavy Nasdaq lost 0.07% and the Dow fell 1.01% at the same period. AMZN stock had lost 6.43% of their value in the past month, surpassing the S&P 500’s loss of 7.59% and falling short of the Retail-Wholesale sector’s loss of 5.97%.

As Amazon nears the deadline for its next earnings report, Wall Street will be watching for encouraging signs from the company. EPS of $0.27 are anticipated, a 12.9% decrease from the same quarter last year. According to our most current average estimate, quarterly revenue will total $128.19 billion, up 15.68% from the same period last year. Our Zacks Consensus Estimates anticipate full-year earnings of $0.21 per share and revenue of $523.76 billion, changes of -93.52% and +11.48% from the prior year, respectively.

It’s crucial to take note of the most recent adjustments to analyst forecasts for Amazon. The most recent short-term business trends, which can alter frequently, are often reflected in these modifications. As a result, optimistic estimate revisions show analyst confidence in the company’s operations and profitability.

Analysis of AMZN Stock

Our analysis demonstrates a direct correlation between these estimate changes and short-term stock prices. This is an opportunity for investors who employ the Zacks Rank. This model offers a straightforward, usable scoring system by taking these estimate changes into account.

The Zacks Rank methodology, which ranks companies from #1 (Strong Buy) to #5 (Strong Sell), has an established track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the last month, the Zacks Consensus EPS estimate has increased by 0.75%. Zacks presently has AMZN stock ranked third (Hold).

AMZN Stock: Time To Go In Big?

Aspects of Amazon’s present value, such as its Forward P/E ratio of 591.06, should be taken into consideration by investors. This valuation is higher than the Forward P/E of 23.89 for companies in the same industry.

We should also point out that Amazon (NASDAQ:AMZN) has a PEG ratio of 26.06. Comparable to the popular P/E ratio, the PEG ratio also considers the company’s anticipated earnings growth rate. As of yesterday’s close, the PEG ratio for AMZN’s sector was 1.23 on average. The retail-wholesale sector includes the Internet-Commerce industry. With a Zacks Industry Rank of 154, this category is in the worst 39% out of more than 250 industries.

By calculating the average Zacks Rank of the individual stocks within the groups, the Zacks Industry Rank assesses the health of each of our industry groupings. According to our analysis, the top 50% of graded industries perform two times better than the bottom 50%.

Featured Image-  Megapixl @ Bigtunaonline

Please See Disclaimer

Latest News

Pinduoduo Stock Dips 7.8% As Insiders Are Presumably Disappointed

PDD stock was trading at $61.47 as of 02:46 PM EDT on Tuesday. Pinduoduo Inc....

Where Oil Prices and Energy Stocks May Go in the Fourth Quarter

In the first half of 2022, oil prices and energy stocks saw a strong...

FedEx Stock up Today as Morgan Stanley Prefers It to UPS

FedEx stock rose to trade at $143.17 as of 01:09 PM EDT. FedEx Corporation's (NYSE:FDX)...

Netflix Stock or Roku Stock: Analysis

Netflix stock was trading at $223.30 as of 12:57 PM Streaming video stocks have been...

More like this

Xrp Retraced Some Of Its Recent Gains, Bitcoin’s Price Remained Below Us$19,000, While Ether Traded At Lower Levels

During trading on Monday afternoon in Asia, the Bitcoin price remained below a US$19,000...

CSCO Stock or Rival Arista Networks?

Analysts who have an optimistic outlook on CSCO stock anticipate that the firm would...

Li Auto Inc Stock Increases Despite Lower Delivery Estimate. 3 Motives Behind the Relocation

An update from Li Auto Inc (NASDAQ:LI) seems to have given investors the impression...

Bed Bath & Beyond Inc Shares Won’t Attempt a Comeback. Here’s Why

Bed Bath and Beyond Inc have developed a brand-new strategy plan. According to history,...

The Price Of One Bitcoin Is Now Less Than Us$19,000. The Price Of One Ether Is Also Lower. However, The Price Of Xrp Has...

After oscillating around the resistance level for the entirety of the previous week, Bitcoin's...

Is Alphabet Stock a Buy or Sell Before the Release of Consumer Devices and the Cloud Conference?

Alphabet stock (NASDAQ:GOOGL) was trading at 98.70 as of 03:16 PM EDT by market...